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5-Year CD Rates in Greater Birmingham Region Lower Than National Average

RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (NASDAQ: TST) reported today national averages this week for 2-year CD rates dropped and 4-year CD rates gained, while all other durations remained unchanged as the Federal Reserve has continued to keep the short-term federal funds rate at a range of zero to 0.25% since late 2008.

"Major U.S. stock markets tumbled last week, but the rate environment remains on track at the moment. Details from the Fed's last meeting showed that members believed their economic forecast overstated the pace of the rise in rates," reported Joe Deaux, TheStreet's Economics Analyst. "Despite this update, savers can remain confident that the U.S. is headed to a rising rate environment, which eventually will boost CD rates."

NATIONAL AVERAGE RESULTS - $10K

Avg Rate This week

Avg Rate Last week

Money Market

0.15%

0.15%

1 month CD

0.11%

0.11%

3 month CD

0.15%

0.15%

6 month CD

0.23%

0.23%

1 year CD

0.36%

0.36%

2 year CD

0.55%

0.56%

3 year CD

0.75%

0.75%

4 year CD

0.93%

0.92%

5 year CD

1.14%

1.14%

In the Greater Birmingham Region area, the average 5-year CD rate sat at 1.09%, lower than the national average of 1.14%. Rates on the 5-year CD ranged from 0.35% on the low end to 2.0% at the high end, which can be found at Compass Bank. The average 3-year CD rate in Greater Birmingham Region was 0.72% with a range of 0.15% to 1.05% found at Aliant Bank. And if you are on the market for a 1-year CD, take a look at Beal Bank, SSB, which currently offers a rate of 0.67% as compared to the Greater Birmingham Region average of 0.39%. Other top rate issuers can be found in the tables that follow.

GREATER BIRMINGHAM REGION AVERAGE RESULTS - $10K

Avg Rate Thisweek

Highest AvailableRate

Highest Available Rate Issuer

Money Market

0.14%

0.35%

Aliant Bank

1 month CD

0.11%

0.3%

Beal Bank, SSB

3 month CD

0.15%

0.31%

Beal Bank, SSB

6 month CD

0.24%

0.51%

Beal Bank, SSB

1 year CD

0.39%

0.67%

Beal Bank, SSB

2 year CD

0.57%

0.9%

Aliant Bank

3 year CD

0.72%

1.05%

Aliant Bank

4 year CD

0.82%

1.25%

Aliant Bank

5 year CD

1.09%

2.0%

Compass Bank

TOP RATE ISSUERS - $10K

This is a list of issuers with top interest rates in the Greater Birmingham Region area. The issuer's Financial Strength Rating is an independent, unbiased evaluation of quarterly regulatory statements. Institutions are assigned a letter grade of A-E with "A" representing the highest rating based on a review of many aspects of financial safety including capitalization, asset quality, profitability and liquidity. For more information, visit www.weissratings.com/help/what-our-ratings-mean.aspx. Information is believed to be accurate, but not guaranteed.

Money Market

Financial StrengthRating

Minimum to EarnInterest ($)

APY(%)

Aliant Bank205-408-2000www.aliantbank.com

B-

10000

0.35

Beal Bank, SSB205-202-8511www.bealbank.com

C-

1000

0.2

CB&S Bank, Inc205-408-7160www.cbsbank.com

C+

2500

0.2

ServisFirst Bank205-949-0345www.servisfirstbank.com

B+

1

0.15

Renasant Bank205-716-3475www.renasantbank.com

B-

10000

0.15

1 Month CD

Financial StrengthRating

Minimum to EarnInterest ($)

APY(%)

Beal Bank, SSB205-202-8511www.bealbank.com

C-

1000

0.3

First Bank of Jasper205-221-3121www.firstbankofjasper.com

C

5000

0.2

First Commercial Bank205-868-4954www.firstcommercialbank.com

C

500

0.15

Renasant Bank205-716-3475www.renasantbank.com

B-

1000

0.1

Compass Bank205-297-1986www.bbvacompass.com

C

1

0.1

3 Month CD

Financial StrengthRating

Minimum to EarnInterest ($)

APY(%)

Beal Bank, SSB205-202-8511www.bealbank.com

C-

1000

0.31

First Bank of Jasper205-221-3121www.firstbankofjasper.com

C

5000

0.2

First Commercial Bank205-868-4954www.firstcommercialbank.com

C

500

0.2

Aliant Bank205-408-2000www.aliantbank.com

B-

2500

0.2

ServisFirst Bank205-949-0345www.servisfirstbank.com

B+

100

0.2

6 Month CD

Financial StrengthRating

Minimum to EarnInterest ($)

APY(%)

Beal Bank, SSB205-202-8511www.bealbank.com

C-

1000

0.51

ServisFirst Bank205-949-0345www.servisfirstbank.com

B+

1000

0.35

First Bank of Jasper205-221-3121www.firstbankofjasper.com

C

5000

0.3

First Commercial Bank205-868-4954www.firstcommercialbank.com

C

500

0.3

Cadence Bank, National Association205-981-4700www.cadencebank.com

C+

1000

0.25

1 Year CD

Financial StrengthRating

Minimum to EarnInterest ($)

APY(%)

Beal Bank, SSB205-202-8511www.bealbank.com

C-

1000

0.67

Aliant Bank205-408-2000www.aliantbank.com

B-

2500

0.65

ServisFirst Bank205-949-0345www.servisfirstbank.com

B+

1000

0.6

Compass Bank205-297-1986www.bbvacompass.com

C

1

0.45

Cadence Bank, National Association205-981-4700www.cadencebank.com

C+

1000

0.4

2 Year CD

Financial StrengthRating

Minimum to EarnInterest ($)

APY(%)

Aliant Bank205-408-2000www.aliantbank.com

B-

2500

0.9

Compass Bank205-297-1986www.bbvacompass.com

C

1

0.85

Beal Bank, SSB205-202-8511www.bealbank.com

C-

1000

0.81

ServisFirst Bank205-949-0345www.servisfirstbank.com

B+

1000

0.75

Cadence Bank, National Association205-981-4700www.cadencebank.com

C+

1000

0.65

3 Year CD

Financial StrengthRating

Minimum to EarnInterest ($)

APY(%)

Aliant Bank205-408-2000www.aliantbank.com

B-

2500

1.05

ServisFirst Bank205-949-0345www.servisfirstbank.com

B+

1000

1.0

Renasant Bank205-716-3475www.renasantbank.com

B-

1000

0.95

Compass Bank205-297-1986www.bbvacompass.com

C

1

0.85

Beal Bank, SSB205-202-8511www.bealbank.com

C-

1000

0.81

4 Year CD

Financial StrengthRating

Minimum to EarnInterest ($)

APY(%)

Aliant Bank205-408-2000www.aliantbank.com

B-

2500

1.25

ServisFirst Bank205-949-0345www.servisfirstbank.com

B+

1000

1.15

Renasant Bank205-716-3475www.renasantbank.com

B-

1000

1.05

Compass Bank205-297-1986www.bbvacompass.com

C

1

1.05

First Bank of Jasper205-221-3121www.firstbankofjasper.com

C

5000

1.0

5 Year CD

Financial StrengthRating

Minimum to EarnInterest ($)

APY(%)

Compass Bank205-297-1986www.bbvacompass.com

C

1

2.0

Aliant Bank205-408-2000www.aliantbank.com

B-

2500

1.4

ServisFirst Bank205-949-0345www.servisfirstbank.com

B+

1000

1.35

Renasant Bank205-716-3475www.renasantbank.com

B-

1000

1.35

Beal Bank, SSB205-202-8511www.bealbank.com

C-

1000

1.25

Data is surveyed weekly with averages calculated each Monday afternoon from RateWatch's unbiased national interest rate survey of over 96,000 financial institution locations across the United States.

More About CDs:

CDs, or certificate of deposits, are bank-issued promissory notes wherein an investor deposits money for a set amount of time and, provided the money remains untouched, receives interest on the total sum when the investment matures.

While the money can't be accessed during that time (without incurring penalties), the advantage of a CD over a regular savings deposit is the higher rate of interest. Typically, a CD can be taken out on as few as three-month terms but can range to up to five years; generally, the longer the timeframe the higher rate of interest.

CD Laddering:

To provide further financial security, a CD laddering strategy offers conservative investors the opportunity to stagger their capital across numerous deposits set to expire at different intervals. Not only does this hedge against variable rate fluctuations by offering a guaranteed return at a locked-in interest rate, it also increases liquidity given that one CD will mature at predictable and established intervals.

Using an example of a five-year ladder strategy, an investor would divide his or her money amongst one-, two-, three-, four-, and five-year CDs. Once the one-year deposit matures, he or she will reinvest the money into a five-year CD, and will do so every subsequent year upon each CD's maturation. In this way, the investor has a CD that matures each year and thus, steady income from the interest on the maturing investments.

Nevertheless, investors must keep in mind that the onus of developing a ladder strategy is on the investor, not the bank or financial institution. In developing a strategy, map out each rung of the ladder, determining how long you want to invest for, the kind of return you are targeting and the length of time you can tolerate not having access to the principal and interest.

About RateWatch

For over 20 years, RateWatch has been the premier provider of competitive interest rate and product information to financial institutions across the United States. Consistently providing top quality, highly relevant data RateWatch maintains the largest database in the industry with deposit, loan, and fee information monitoring over 96,000 locations. Rate surveys, product comparisons, financial strength reporting, local/regional/national averages, fee reporting, specialty reports and more are available. To learn more about RateWatch, visit www.rate-watch.com. RateWatch is a division of TheStreet, Inc.

National Average is calculated using one unique rate per institution. Averages and Top Rate Issuers are based on Banks, Savings & Loans, Brokers and Internet Banks with assets greater than $1 Billion.